Silver’s Coiling Like a Spring

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The Dollar Index is now facing some significant resistance in the 99-100 zone

Stefan GleasonBullion.Directory precious metals analysis 17 February, 2020
By Stefan Gleason

President of Money Metals Exchange

If the buck turns lower from here, that should help hard asset prices continue to recover from their coronavirus lows.

If the USD continues powering higher in the days ahead, that would suggest investors remain nervous about the geopolitical and economic fallout from the China virus. Such fears usually imply selling in stock markets and industrial commodities – and potentially some safe-haven buying of gold.

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The yellow metal appears likely to challenge the $1,600/oz. level again very soon. A break above it would establish new 7-year highs. Longer-term, bulls will be eying $1,900/oz – gold’s all-time high from 2011.

Silver is much further away from its former all-time highs. But when silver runs, it can run much faster than gold.

The first psychologically significant breakout point for silver would be at the $20/oz level.

As metals analyst David Smith explained during the most recent Money Metals podcast, “Technically, on the upside you’ve got resistance at $18, $19 and $20. And that could even take a while to get through or it could just cut through it like a knife through butter. But that will tell you something, if it does. I think the real realization is going to start dawning on people when silver gets above $20 and stays there for a few days… You really don’t have too much resistance between $20 and $26. And I think it’s very possible that by the end of this year, silver will challenge $26.

This article was originally published here Bullion.Directory or anyone involved with Bullion.Directory will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading in precious metals. Bullion.Directory advises you to always consult with a qualified and registered specialist advisor before investing in precious metals.

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